The developer of a proposed Rosemont casino is running low on money and plans to ask the Illinois Gaming Board to allow controversial shareholders Donald and Kevin Flynn to lend as much as $5 million to the beleaguered company, sources familiar with the matter say.

State gaming regulations require Chicago-based Emerald Casino Inc., which is appealing the Gaming Board's decision not to approve its plans for the northwest suburban casino, to seek the board's approval for an extension of its credit line.

Ironically, the developer must seek relief from the very governing body that rejected its casino bid and is attempting to revoke and seize its license.

"There's no reason to grant this request," says Thomas Grey, executive director of the National Coalition Against Gambling Expansion. "Why would the board be willing to let them continue to fight for a license the board has determined they shouldn't have in the first place?"

The company and the village of Rosemont have spent a total of more than $70 million on the stalled project. Emerald needs additional funds to continue legal challenges on a number of fronts, sources say.

In addition to its appeal, the company last week filed a separate lawsuit in Cook County Circuit Court challenging the Gaming Board's decision. Behind the scenes, Emerald has hired William Kunkle, an attorney who is representing casino mogul Jack Binion in a settlement with the board, to try to reach its own settlement.

Casino proponents argue that the dormant license is costing the state $100 million in lost tax revenues a year and that it would be in the state's interest to settle the dispute. But opponents say the board should stick to its decision and deny the company's request to borrow money from the very shareholders whom Gaming Board members earlier this year found unfit to build the casino.

Among their reasons for denying Emerald's request, Gaming Board members in January cited a staff report concluding that some investors, including former Waste Management Inc. executive Donald Flynn and his son Kevin Flynn, "provided false and misleading information to the board and failed to establish a record of regulatory compliance."

Kevin Flynn, Emerald's CEO, declined to comment for this story.

A Gaming Board spokesman says a presentation from the company is on the agenda for the board's meeting Wednesday, but he refused to comment further.

Gaming Board Commissioner Sterling Mac Ryder says he has not seen Emerald's request. "But if that's correct, I'm not surprised they need additional capital to support their efforts," he says.